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A small cap company is especially well positioned to jump to the next level when it has the following characteristics: minimal debt and substantial growth projections. This is especially true in the healthcare industry, where innovation and research drive competition at a fast pace. When a company has a low amount of debt, it has more freedom to spend on strategic alliances and product development. Likewise, an EPS growth rate of 25% or more in the coming year signifies that a company is worth watching. If small cap stocks in the healthcare industry with these traits speak to you, then you will like our list below.

The Debt/Equity Ratio illustrates how aggressively a company is financing its growth via debt. The more debt financing that is used in a capital structure, the more volatile earnings can become due to the additional interest expense. Should a company's potentially enhanced earnings fail to exceed the cost associated with debt financing over time, this can lead the company toward substantial trouble.

EPS growth (earnings per share growth) illustrates the growth of earnings per share over time. The 1-Year Expected EPS Growth Rate is an annual growth estimate, where the growth projections are made by analysts, the company or other credible sources.

We first looked for small cap healthcare stocks. We then looked for businesses that have maintained a sound capital structure (D/E Ratio<.1). We then looked for businesses that are considered high-growth, with 1-year projected EPS growth above 25%.

Do you think these small-cap stocks should be trading higher? Use our screened list as a starting point for your own analysis.

1) Luminex Corporation (LMNX)

SectorHealthcare
IndustryMedical Instruments & Supplies
Market Cap$762.54M
Beta0.59

LMNX stock chart

Key Metrics

Debt/Equity Ratio0.01
1-Year Projected Earnings Per Share Growth Rate43.75%
Short Interest9.83%

Luminex Corporation engages in the development, manufacture, and sale of proprietary biological testing technologies and products for the life sciences and diagnostic industries. It offers xMAP technology, an open architecture and multiplexing technology that allows simultaneous analysis of approximately 500 bioassays from a drop of fluid by reading biological tests on the surface of microscopic polystyrene beads called microspheres. The company's xMAP technology is used in various segments of the life sciences industry, such as the fields of drug discovery and development, clinical diagnostics, genetic analysis, bio-defense, food safety, and biomedical research.

2) Exact Sciences Corporation (EXAS)

SectorHealthcare
IndustryBiotechnology
Market Cap$661.08M
Beta1.37

EXAS stock chart

Key Metrics

Debt/Equity Ratio0.02
1-Year Projected Earnings Per Share Growth Rate30.60%
Short Interest10.29%

Exact Sciences Corporation, a molecular diagnostics company, focuses on developing a molecular diagnostic technology for the early detection and prevention of colorectal pre-cancer and cancer. The company develops the Cologuard, a non-invasive stool-based DNA colorectal cancer screening test that is designed to detect each of the four stages of colorectal cancer, as well as pre-cancerous lesions. Its test includes proprietary and patented methods, which isolate and analyze the trace amounts of human DNA that are shed into stool every day from the exfoliation of cells that line the colon.

3) Abaxis Inc. (ABAX)

SectorHealthcare
IndustryDiagnostic Substances
Market Cap$855.71M
Beta1.16

ABAX stock chart

Key Metrics

Debt/Equity Ratio0.00
1-Year Projected Earnings Per Share Growth Rate46.67%
Short Interest8.04%

Abaxis, Inc. develops, manufactures, markets, and sells portable blood analysis systems for use in human or veterinary patient-care setting to provide blood constituent measurements for clinicians worldwide. The company offers a point-of-care blood chemistry analyzer, which consists of a compact portable analyzer and a series of single-use plastic discs, called reagent discs, containing all the chemicals required to perform a panel of up to 14 tests on human patients and 13 tests on veterinary patients. It markets the blood analysis systems under the Piccolo Xpress, Piccolo Classic, VetScan VS2, and VetScan Classic names.

4) The Spectranetics Corporation (SPNC)

SectorHealthcare
IndustryMedical Appliances & Equipment
Market Cap$431.90M
Beta1.71

SPNC stock chart

Key Metrics

Debt/Equity Ratio0.00
1-Year Projected Earnings Per Share Growth Rate114.29%
Short Interest3.90%

The Spectranetics Corporation, together with its Subsidiaries, develops, manufactures, markets, and distributes single-use medical devices used in minimally invasive procedures in the cardiovascular system. Its products are used to treat arterial blockages in the heart and legs, and to remove pacemaker and defibrillator cardiac leads. The company's vascular intervention product line includes peripheral atherectomy, coronary atherectomy, crossing solutions, thrombus management, and therapeutic infusion system.

5) Tesaro, Inc. (TSRO)

SectorHealthcare
IndustryBiotechnology
Market Cap$350.13M
Beta-

TSRO stock chart

Key Metrics

Debt/Equity Ratio0.00
1-Year Projected Earnings Per Share Growth Rate68.40%
Short Interest0.36%

Tesaro, Inc., an oncology-focused biopharmaceutical company, identifies, acquires, develops, and commercializes oncology therapeutics and supportive care product candidates in the United States, Europe, and other international markets. Its product portfolio includes Rolapitant, a neurokinin-1 receptor antagonist, which is in Phase III clinical trials for the prevention of chemotherapy induced nausea and vomiting; and TSR-011, an orally available anaplastic lymphoma kinase inhibitor that is in preclinical development for the treatment of non-small cell lung cancer and other cancer indications.

6) OraSure Technologies Inc. (OSUR)

SectorHealthcare
IndustryMedical Instruments & Supplies
Market Cap$579.65M
Beta1.52

OSUR stock chart

Key Metrics

Debt/Equity Ratio0.07
1-Year Projected Earnings Per Share Growth Rate44.80%
Short Interest7.34%

OraSure Technologies, Inc. develops, manufactures, markets, and sells oral fluid diagnostic products and specimen collection devices in the United States and internationally. Its products include OraQuick ADVANCE HIV-1/2, a point-of-care qualitative test for antibodies to the Human Immunodeficiency Virus (HIV) Type 1 and 2; OraQuick HCV, a point-of-care qualitative test for antibodies to the hepatitis C virus; OraSure QuickFlu Rapid Flu A&B Test, a point-of-care qualitative test for antibodies to influenza Types A and B, including H1N1 infections; OraSure, an oral fluid collection device for the detection of antibodies to HIV-1 in an oral fluid sample; and Intercept, an oral fluid collection device for oral fluid drugs of abuse testing in a laboratory setting. The company's products also include cryosurgical systems for the removal of common and plantar warts, and other benign skin lesions; Oragene DX, OMNIgene DISCOVER, ORAcollect, and OrageneDNA, which are non-invasive systems for the collection, stabilization, transportation, and storage of human DNA from saliva; OMNIgeneDISCOVER, a non-invasive all-in-one system for the collection, stabilization, transportation, and storage of microbial DNA from saliva; and Performagene LIVESTOCK and Oragene ANIMAL systems for the collection, stabilization, transportation, and storage of livestock DNA from nasal samples.

7) Given Imaging Ltd. (GIVN)

SectorHealthcare
IndustryMedical Appliances & Equipment
Market Cap$390.09M
Beta1.42

GIVN stock chart

Key Metrics

Debt/Equity Ratio0.00
1-Year Projected Earnings Per Share Growth Rate47.92%
Short Interest2.06%

Given Imaging Ltd., together with its subsidiaries, develops, manufactures, and markets diagnostic products for the visualization and detection of gastrointestinal tract disorders. The company provides the Given System, a proprietary wireless imaging system that uses PillCam capsules for visual examination of the gastrointestinal tract. These PillCam capsules, when ingested by patients, move naturally through the gastrointestinal tract, and wirelessly transmit to a portable recorder, enabling the gastroenterologist to view video, images, and data on a computer.

*Company profiles were sourced from Google Finance and Yahoo Finance. Financial data was sourced from Finviz on 08/21/2012.

Source: 7 Low-Debt Small Cap Healthcare Stocks Positioned For Growth